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Gartner Earnings Outpace Estimates in Q4, Revenues Rise Y/Y
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Key Takeaways
IT posted Q4 EPS of $3.94 and revenues of $1.8B, topping estimates despite a 27.7% y/y EPS decline.
Gartner saw Insights revenues rise 3% to $1.3B and Conferences jump 14%, while Consulting fell 13%.
IT sees FY26 revenues at $6.46B and EPS at $12.3, both below the consensus estimate, with EBITDA at $1.52B.
Gartner, Inc. (IT - Free Report) has reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.
The IT stock has lost 63% in a year compared with the 35.1% dip in the industry it belongs to and against the 18.8% rally of the Zacks S&P 500 Composite.
Revenues in the Insights segment were $1.3 billion, which increased 3% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis, meeting the Zacks Consensus Estimate. The gross contribution margin was 77%, which amounted to a gross contribution of $989 million in the fourth quarter of 2025.
Conferences segment revenues amounted to $286 million, which jumped 14% from the year-ago quarter on a reported basis and 11% on a foreign-currency-neutral basis. The metric surpassed the consensus mark of $271.4 million. The gross contribution margin was 51% in the reported quarter, which amounted to a gross contribution of $147 million.
Consulting revenues were $134 million, which declined 13% year over year on a reported basis and 15% on a foreign-currency-neutral basis. It missed the consensus estimate of $156.7 million. The gross contribution margin was 27%, which logged a gross contribution of $36 million.
Gartner’s Operating Performance
Adjusted EBITDA of $436 million gained 5% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $1.7 billion in cash and cash equivalents at the end of the fourth quarter compared with $1.4 billion at the end of the preceding quarter. The long-term debt was $3 billion compared with $2.5 billion in the third quarter of 2025.
The operating cash flow totaled $294.5 million and the free cash flow utilized was $311 million in the reported quarter. Capital expenditure totaled $23.8 million.
Gartner’s 2026 Outlook
For 2026, the company expects revenues of $6.46 billion. The guidance is lower than the Zacks Consensus Estimate of $6.7 billion.
IT’s guidance for adjusted earnings per share is $12.3. The guidance is lower than the Zacks Consensus Estimate for earnings of $13.63.
The adjusted EBITDA guidance is kept at $1.52 billion. The free cash flow guidance is set at $1.14 billion.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2026 results.
ADP’s earnings per share of $2.62 beat the consensus estimate by 1.6% and increased 11.5% from the year-ago quarter. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but grew 6.1% on a year-over-year basis.
FactSet (FDS - Free Report) posted impressive results for the first quarter of fiscal 2026.
FDS’s earnings per share of $4.51 beat the consensus mark by 2.7% and increased 3.2% from the year-ago quarter. Revenues of $607.6 million beat the Zacks Consensus Estimate by 1.4% and rose 6.9% from the year-ago quarter.
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Gartner Earnings Outpace Estimates in Q4, Revenues Rise Y/Y
Key Takeaways
Gartner, Inc. (IT - Free Report) has reported fourth-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The company’s adjusted earnings per share of $3.94 beat the Zacks Consensus Estimate by 12.6% but decreased 27.7% from the year-ago quarter. Revenues of $1.8 billion beat the consensus estimate by a slight margin and improved 2.2% year over year.
The IT stock has lost 63% in a year compared with the 35.1% dip in the industry it belongs to and against the 18.8% rally of the Zacks S&P 500 Composite.
Gartner, Inc. Price, Consensus and EPS Surprise
Gartner, Inc. price-consensus-eps-surprise-chart | Gartner, Inc. Quote
IT’s Revenues by Segments
Revenues in the Insights segment were $1.3 billion, which increased 3% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis, meeting the Zacks Consensus Estimate. The gross contribution margin was 77%, which amounted to a gross contribution of $989 million in the fourth quarter of 2025.
Conferences segment revenues amounted to $286 million, which jumped 14% from the year-ago quarter on a reported basis and 11% on a foreign-currency-neutral basis. The metric surpassed the consensus mark of $271.4 million. The gross contribution margin was 51% in the reported quarter, which amounted to a gross contribution of $147 million.
Consulting revenues were $134 million, which declined 13% year over year on a reported basis and 15% on a foreign-currency-neutral basis. It missed the consensus estimate of $156.7 million. The gross contribution margin was 27%, which logged a gross contribution of $36 million.
Gartner’s Operating Performance
Adjusted EBITDA of $436 million gained 5% from the year-ago quarter on a reported basis and 1% on a foreign-currency-neutral basis.
Balance Sheet & Cash Flow of IT
Gartner had $1.7 billion in cash and cash equivalents at the end of the fourth quarter compared with $1.4 billion at the end of the preceding quarter. The long-term debt was $3 billion compared with $2.5 billion in the third quarter of 2025.
The operating cash flow totaled $294.5 million and the free cash flow utilized was $311 million in the reported quarter. Capital expenditure totaled $23.8 million.
Gartner’s 2026 Outlook
For 2026, the company expects revenues of $6.46 billion. The guidance is lower than the Zacks Consensus Estimate of $6.7 billion.
IT’s guidance for adjusted earnings per share is $12.3. The guidance is lower than the Zacks Consensus Estimate for earnings of $13.63.
The adjusted EBITDA guidance is kept at $1.52 billion. The free cash flow guidance is set at $1.14 billion.
Gartner carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Peers
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2026 results.
ADP’s earnings per share of $2.62 beat the consensus estimate by 1.6% and increased 11.5% from the year-ago quarter. Total revenues of $5.4 billion missed the consensus estimate by a slight margin but grew 6.1% on a year-over-year basis.
FactSet (FDS - Free Report) posted impressive results for the first quarter of fiscal 2026.
FDS’s earnings per share of $4.51 beat the consensus mark by 2.7% and increased 3.2% from the year-ago quarter. Revenues of $607.6 million beat the Zacks Consensus Estimate by 1.4% and rose 6.9% from the year-ago quarter.